CED Leadership & Strategic Management 3 — Questions and Answers
Question 1: Which leadership theory holds that effective leadership depends on matching style to the developmental level of followers?
- Path-Goal Theory
- Situational Leadership Theory (Correct answer)
- Leader-Member Exchange Theory
- Servant Leadership Theory
Correct answer: Situational Leadership Theory
Situational Leadership Theory (Hersey & Blanchard) prescribes directing, coaching, supporting, or delegating based on follower readiness.
Question 2: A Certified Executive Director is conducting an environmental scan. Which tool systematically examines Political, Economic, Social, Technological, Environmental, and Legal factors?
- SWOT Analysis
- PESTEL Analysis (Correct answer)
- Value Chain Analysis
- Gap Analysis
Correct answer: PESTEL Analysis
PESTEL Analysis is the standard macro-environmental scanning framework examining six external factor categories.
Question 3: An organization's strategy execution is failing despite a sound strategic plan. The MOST likely root cause is:
- Insufficient market research during planning
- Poor alignment between strategy, structure, systems, and culture (Correct answer)
- Overly ambitious performance targets
- Lack of competitive differentiation
Correct answer: Poor alignment between strategy, structure, systems, and culture
Strategy execution fails most often when organizational design elements — structure, systems, people, and culture — are misaligned with strategic priorities.
Question 4: In the context of nonprofit governance, what is the executive director's PRIMARY responsibility regarding the board of directors?
- To make all major decisions independently and report outcomes
- To implement board-approved strategy and keep the board appropriately informed (Correct answer)
- To recruit new board members who agree with staff perspectives
- To limit board involvement in organizational operations
Correct answer: To implement board-approved strategy and keep the board appropriately informed
The ED serves as the board's operational partner — implementing approved strategy, managing staff, and ensuring the board has information needed to govern effectively.
Question 5: Which concept describes a leader's ability to understand and manage their own emotions while also recognizing and influencing others' emotions?
- Cognitive Intelligence (IQ)
- Emotional Intelligence (EQ) (Correct answer)
- Cultural Competence
- Psychological Safety
Correct answer: Emotional Intelligence (EQ)
Emotional Intelligence (Goleman) encompasses self-awareness, self-regulation, motivation, empathy, and social skills — critical for executive leadership.
Question 6: A strategic alliance differs from a merger in that:
- Alliances involve greater capital investment
- Partners in an alliance maintain legal independence while collaborating on specific objectives (Correct answer)
- Mergers are always reversible, alliances are not
- Alliances require regulatory approval; mergers do not
Correct answer: Partners in an alliance maintain legal independence while collaborating on specific objectives
Strategic alliances allow organizations to pursue shared goals while each retains its separate legal identity and governance structure.
Question 7: When conducting a stakeholder analysis, which stakeholders should receive the MOST active engagement and management?
- Those with low power and low interest
- Those with high power and high interest (Correct answer)
- Those with high interest but low power
- Those with high power but low interest
Correct answer: Those with high power and high interest
High-power, high-interest stakeholders are classified as 'key players' who must be actively managed and engaged in the Power/Interest Grid.
CED Leadership & Strategic Management 3
Which leadership theory holds that effective leadership depends on matching style to the developmental level of followers?